Motion to Invalidate Exemption for Injury Annuity Invalidated by Trustee

The United States Bankruptcy Court for the District of New Jersey in the case of In the Matter of Russo, denied a bankruptcy trustee's motion to invalidate an exemption on a debtor's bankruptcy petition for an annuity that was established after the debtor received a judgment following a serious car accident . Over twenty five years ago, the debtor in this case was involved in a car accident which resulted in him suffering multiple severe and permanent injuries. The defendants in the car accident case established an annuity for the debtor as a means of settling the personal injury litigation. In November of 2011, over two and half decades later, the debtor filed for bankruptcy. In his petition the debtor listed an "accident related annuity, not accessible until 2019" with a value of $140,000 as an asset. The debtor listed this asset as exempt pursuant to 11 U.S.C. 522(d)(11)(E) as an "accident related" annuity. The debtor claimed that the annuity was created to compensate him for lost future wages that resulted from the injuries he suffered in the accident. The bankruptcy trustee requested more documents relating to the annuity and the parties entered into a consent order to extend the deadline for which the trustee had to file an objection. Months went by, the deadline passed, and no subsequent consent orders were signed. On February 25, 2013, the trustee filed a motion to liquidate the annuity and invalidate the exemption because he believed that the exemption was improper. The Bankruptcy Court denied the trustee's motion on the ground that it was not filed in a timely manner. The trustee subsequently filed a motion for reconsideration, asserting that the debtor and his attorneys deceptively feigned cooperation in determining the basis for the annuity for several months. The court denied the trustee's motion for reconsideration because it agreed that he did not file an objection in a timely manner. Bankruptcy is a simple matter but involves substantial technicalities which can leave you with or without the means to support yourself in the future with exempt assets. Due to the technicalities involved, it is critical you have experienced legal counsel to assist you in the preparation and filing of your bankruptcy petition. For more information regarding exemptions, retaining assets, filing for bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Actor/Singer Aaron Carter Values Dog As $0 On Bankruptcy Petition

Actor and singer Aaron Carter has filed for Chapter 7 bankruptcy and valued his pet bulldog as $0 on the bankruptcy petition. According to a news source, the entertainer has claimed debts in the amount of $2,204,854 and remaining assets totaling $8,232.16. In his petition, Carter lists his assets as a 61 inch flat screen television, two MacBook computers, two Headset microphones, a speaker, a guitar, $60.00 in cash, a Louis Vuitton backpack, a duffle bag, a printer worth $2,500, and a watch worth $3,750. Most interestingly, Carter listed the value of his purebred English Bulldog pet at $0. It was reported that Carter stated that he devalued his beloved pet because he was afraid that the bankruptcy trustee would attempt to sell off the dog to satisfy his creditors. Traditionally, all of a debtor's assets in a bankruptcy proceeding have some worth or value and debtors are under an obligation to accurately and fairly place a value on all of the assets that are listed on the bankruptcy petition. In truth, Carter most likely did not have anything to worry about even if he accurately assessed the value of his pet, which most likely is worth between $1,500 and $2,000, because a bankruptcy trustee will rarely attempt to sell an animal as the time and effort involved in selling an animal usually exceeds the price at sale. Further, the fact that Carter overtly devalued one of his assets could raise a suspicion in the trustee as to what other assets he may have purposely devalued. Bankruptcy petitions are legal documents that are filed with the court, therefore, lying on such documents could result in the dismissal of a debtor's bankruptcy case. If you are having trouble dealing with your consumer debt and are considering filing for bankruptcy or would simply like to know more about the process of filing for bankruptcy it is critical that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Does The Fair Debt Collection Pracctices Act Protect Against Wage Garnishment?

Many people facing bankruptcy wonder if the Fair Debt Collection Practices Act (FDCPA) will protect them from wage garnishment, unfortunately the answer is - no. The FDCPA is a law that places limitations on the methods that debt collection agencies can attempt to compel debtors to pay off their debts. For instance, the FDCPA limits the times that debt collectors can call debtors and it does not allow these agencies to make threats that they cannot legally act upon. If a debtor defaults on a loan, the lender will initially attempt to collect on the debt on their own. If initial attempts to collect on the debt fail, the lender will usually assign that debtor's account to a collections agency. After the debt collector makes numerous attempts to get the debtor to repay his or her debt, it may institute a legal action against the debtor in court. If this happens, the debtor will receive a summons notifying them that they are being sued and they will have 35 days to answer the summons. If the debtor fails to respond to the summons, under New Jersey Court Rule 1:13-7, the court will enter a judgment against the debtor upon the creditor's request. Next, the court may allow the creditor to garnish the debtor's salary as a means to repay the debts that were the subject of the judgments. Under N.J.S.A. 2A:17-50, as long as a debtor makes more than $48.00 a week, a creditor may garnish his wages for repayment on a debt. The creditor who has received the legal judgment against the debtor will get a writ, or document from the court, and send it to the debtor's employer notifying them of the wage garnishment. Under federal law, only 25% of a debtor's disposable income may be garnished to satisfy a debt. A debtor's income calculation, for the purposes of wage garnishment, does not include government entitlements and payouts such as social security payments, disability benefits, or other state benefits. If you are having trouble dealing with your consumer debt and would like to know more about the FDCPA or fear that your wages may be garnished to satisfy your debt obligations it is imperative that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding the Fair Debt Collection Practices Act (FDCPA), when you should file for bankruptcy, Chapter 7 bankruptcy, Chapter 13 bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.

Should You File for Bankruptcy? What You Should Know First

During these difficult economic times many people drowning in debt may begin to ask themselves, should I file for bankruptcy? With bills mounting, debts becoming overwhelming, and options running out - families may begin to panic in the face of daunting financial crisis. To many, "bankruptcy" is a word that conjures feelings of embarrassment or reflects sentiments of weakness. This simply is not true. Instead, for the vast majority of people who engage the process, bankruptcy provides them with a new beginning and a clean slate. Filing for bankruptcy stops creditors from constantly sending harassing letters and making continuous calls and, in the end, it may provide the debtor with a complete discharge of his or her debts. In order to decide if one should file for bankruptcy it helps to know a little more about the process itself. The first step in filing for bankruptcy is the filing of the bankruptcy petition with the United States Bankruptcy Court in the state where the debtor lives. Immediately upon filing creditors are bound by the automatic stay and are prohibited from contacting the debtor regarding the collection of debts. Within the petition, the debtor will list all of the property that they own and other information which will provide the court with all of the information it needs to understand that debtor's entire financial situation. During the automatic stay period, the debtor can attempt to protect certain kinds of property from the bankruptcy proceedings by making use of some of the many exemptions that the Bankruptcy Code provides. The filing of the bankruptcy petition, including the classification of debts and exemptions, can be very complicated. It is strongly advised that debtors seek out the advice of an experienced attorney before doing so. After the petition is filed, the debtor will have to appear before the bankruptcy trustee who will review the petition and ascertain if there are any available funds to satisfy any money owed to creditors. Usually, if the debtor has hired an attorney, the attorney will accompany them to this meeting which, for the debtor, is often one of life's more difficult moments. If the trustee discerns that there are no available funds to repay the debts that are owed to the creditors the debtor will receive a discharge order from the court indicating that he or she is discharged of all outstanding debts and then all creditors will be notified that the debtor is no longer liable for their debts. If you are having trouble dealing with your consumer debt and deciding if you should file for bankruptcy it is imperative that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding if you should file for Chapter 7 bankruptcy, Chapter 13 bankruptcy, foreclosure or any other consumer debt issues in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Chapter 13 May Allow You to Keep Your Home

A substantial number of homeowners in New Jersey have taken out home equity loans to allow them to make their monthly mortgage payments but, for many in these difficult economic times, it has become nearly impossible to make payments on these loans. Filing for Chapter 13 bankruptcy may provide people in this situation with a way to keep their homes. Many homeowners in New Jersey have dreamed of owning their own home for their entire lives. Due to the high cost of homes in New Jersey many people have to take out a home equity loan to allow them to make their mortgage payments each month. A home equity loan is like a second mortgage that provides the consumer with cash and requires that a piece of property, most likely the home, serve as the security on the loan. For homeowners who, for whatever reason, find that they are unable to continue to make the payments on these loans, the bank's repossession of the home is a very real and scary possibility. Fortunately, for individuals who find themselves in this situation there are options that may allow them to retain possession of their home. Unlike a Chapter 7 bankruptcy wherein the debtors assets are sometimes substantially liquidated, Chapter 13 bankruptcy may provide the debtor with the financial relief that they are seeking while allowing them to remain in possession of their home. Filing for bankruptcy under Chapter 13 allows a debtor to reorganize all of their debt and assets into a manageable payment plan that will permit them to more easily continue to make payments on their debts and retain their assets. The entire process is handled through the bankruptcy court. The court will create a payment plan based upon the debtor's amount of debt and income. The repayment plan is typically set for a period of three to five years. During this repayment period, the homeowners are expected to make monthly mortgage and other bill payments to the court according to the plan. The court, not the debtor, will apply such payments to the remainder of the debtor's loan. Ultimately, in such a situation, as long as the debtor continues to maintain their monthly payments as set forth by the court's repayment plan, they will remain in possession of their home as they climb out of their financial crisis. For many debtors who have fallen behind on their bills a a result of illness, layoff or significant events but would now be able to meet regular monthly obligations if substantial interest and penalties for the prior late payments could be managed Chapter 13 bankruptcy is a very real possibility. If you are having trouble making your mortgage payments but would like to remain in your home it is critical that you seek the advice of experienced legal counsel to advise you on the issues concerning bankruptcy. For more information regarding Chapter 13 bankruptcy, Chapter 7 bankruptcy, foreclosure or any other consumer debt issues in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney

Credit Card Debt and Bankruptcy

As the holiday season comes to a close, many people may already be starting to worry about their growing credit card debt issues. Statistics indicate that millions of people are still trying to pay the credit card debt that was incurred during the previous holiday season a year after making their purchases. The high interest rates that are attached to credit card purchases combined with excessive holiday gift buying could result in a financial disaster that many people simply cannot find an easy way out of. To avoid finding themselves in the aforementioned financial crisis, consumers should strive to make credit card payments that are higher than the minimum monthly payments. For some, their debt is so high that they even have difficulty paying the monthly minimum payment amounts. If an individual becomes overwhelmed by their credit debt bankruptcy may be an option to help them find a way out of their consumer debt crisis. Upon filing for bankruptcy, the debtor will receive the benefit of the automatic stay, which prohibits creditors from harassing the debtor to make payments on their debt. Some debtors may even receive a complete discharge of their credit card debt through the bankruptcy process. It is important to find out whether your holiday shopping debt is dischargeable in bankruptcy before filing your petition. During the bankruptcy proceedings, if the bankruptcy court concludes that a debtor purposely incurred the debt with the intention of filing for bankruptcy in the new year, the debtor will remain liable for all of the debt that assumed. If you are having trouble dealing with your credit card debt or other consumer debts and are considering filing for bankruptcy, it is critical that you seek the advice of experienced legal counsel to advise you on the options you have in resolving such matters. For more information about credit card debt, bankruptcy, foreclosure or any other consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and not intended to replace the advice of an attorney.